Senate inquiry 'to do little for milk prices'

Victoria dairy farmers doubt that a Senate inquiry will lead to an increase in the price they are paid for milk.

The economics committee inquiry is investigating whether market powers and the concentration of ownership have led to cuts in farm-gate milk prices.

But the United Dairyfarmers of Victoria president, Chris Griffin, blames the export market.

He says little can be done on a local level, because of the amount of milk exported.

"It might expose a little bit more information to the public about what the reasons are behind the price drop, but given that we export a considerable amount of product out of Victoria, we are reliant on the export market for our returns, and that's why we're incurring the low prices at the moment," he said.